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Coastal Overseas Trade Corporation, Rep. by its Proprietor, Chennai v/s Union of India, Rep. by the Secretary to Government, Ministry of Finance, Department of Economic Affairs, (Banking Division), New Delhi & Others


Company & Directors' Information:- COASTAL CORPORATION LIMITED [Active] CIN = L63040AP1981PLC003047

Company & Directors' Information:- A & F OVERSEAS TRADE LIMITED [Active] CIN = U52321TN1984PLC010790

Company & Directors' Information:- A.T. TRADE OVERSEAS PRIVATE LIMITED [Active] CIN = U99999MH1997PTC110234

Company & Directors' Information:- P C INDIA LIMITED [Strike Off] CIN = U33111TN1986PLC013401

Company & Directors' Information:- A V M TRADE AND FINANCE PRIVATE LIMITED [Active] CIN = U25200MH1985PTC037195

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- TRADE FINANCE CORPN LTD [Strike Off] CIN = U65922WB1953PLC021193

Company & Directors' Information:- DELHI OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1985PTC022879

Company & Directors' Information:- TRADE INDIA OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909GJ1994PTC022799

Company & Directors' Information:- ECONOMIC CORPN PVT LTD [Strike Off] CIN = U24246WB1959PTC024422

Company & Directors' Information:- S AND I BANKING CORPORATION LIMITED [Dissolved] CIN = U65191KL1901PLC001036

Company & Directors' Information:- TRADE FINANCE COMPANY LIMITED [Dissolved] CIN = U99999MH1929PTC001548

    W.P.Nos. 31178 & 31179 of 2014 & M.P.Nos. 1 & 2 of 2014

    Decided On, 07 January 2015

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE SATISH K. AGNIHOTRI & THE HONOURABLE MR. JUSTICE M. VENUGOPAL

    For the Petitioner: S.M. Deenadayalan, Advocate. For the Respondents: R1 & R2, Su. Srinivasan, Additional Solicitor General, R2, P. Veeraraghavan, Advocate.



Judgment Text

(Prayer in W.P. No.31178 of 2014: Writ Petition filed under Article 226 of the Constitution of India seeking a writ of declaration declaring that Section 2(i)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Clause 2.1 of Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to advances issued by the second respondent as ultra vires the Constitution of India, void ab initio, illegal and unconstitutional and consequently, forbear the second respondent bank from continuing the proceedings initiated under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as against the petitioner herein with reference to the subject property more fully set out in petition schedule.

Schedule of the properties:

Land and building of residential flat being flat No.F3, I Floor, ABC Suvidha Apartments, bearing Door No.7/3, Barracah Road, Kellys, Kilpauk, Chennai 600 010 having plinth area of 1321 sq. ft. together with 520 sq. ft. of undivided share of land in the total extent of land measuring 1 ground 1770 sq. ft. of land (as per patta/town survey extract 4224 i.e. 1 ground 1824 sq. ft.) comprised in Survey No.2932/2 (as per patta survey no.2932/28) at Purasawakkam Village, Perambur – Puraswakkam Taluk, belongs to Smt. Meena Jain, bounden on the

North by : Private road

South by : House of S.S. Viswanathan

East by : House of D. Ramiah Maistry

West by : Barrach Road

situated within the Registration District of Chennai-Central and Registration Sub District of Purasawakkam.

Prayer in W.P. No.31179 of 2014:

Writ Petition filed under Article 226 of the Constitution of India seeking a writ of declaration declaring that Section 2(i)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Clause 2.1 of Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to advances issued by the second respondent as ultra vires the Constitution of India, void ab initio, illegal and unconstitutional and consequently, forbear the second respondent bank from continuing the proceedings initiated under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as against the petitioner herein with reference to the subject property more fully set out in petition schedule.

Schedule of the properties:

Land and residential house constructed in 2193 sft of land area with constructed area of 3932 sft in ground, 1st and 2nd floors situated at Sipaniyon la Mohalia, Purani Lane, Gangashankar, Bikaner (Rajasthan) belonging to Mr. Rajendra Kumar Lunia as a Karta of his own HUF.

North by : House of Jatanlal Baid

South by : House of Dhanraji Daga

East by : Road

West by : Road situated with the Registration District of Bikaner Rajasthan.)

Common Order:

1. The question involved in these writ petitions, viz., the validity and constitutionality of Section 2(1)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, came up for consideration in a batch of writ petitions. A Division Bench of this Court, in Deccan Chronicles Holdings Ltd. and others vs. Union of India, r

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epresented by its Joint Secretary, Ministry of Finance, Department of Economic Affairs, New Delhi- 110 011 and Others - 2014 (4) MLJ 257, upheld the constitutional validity of the said provision and dismissed the said batch of writ petitions. 2. In view of the above, these writ petitions are also dismissed. No costs. Connected Miscellaneous Petitions are closed.
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